|Michelle Chia, the spokesperson for Maxi Cash!|
I have seen many forums and read up a bit on the news and its prospectus; and the views are inconsistent on whether this IPO will soar on its debut...
Let's look at its corporate profile:
Maxi Cash is a subsidiary of mainboard-listed jewellery retailer and property developer Aspial Corporation - formerly Lee Hwa Holdings.
And the Summarized Financial Statements are here below:
Now lets talk about the Pros and Cons of this company and finally an opinion by myself.
- Well established market position (13%) of the whole industry; 24 locations islandwide near amenities such as Bus Interchanges and Mrt Stations.
- Strong Brand Name - thats why all the people in the forums are talking about it!
- Experienced Management Team in Jewellery Industry; Parent company is aspial corporation too.
- Different Feel - A "bank-like" modern feel sets it apart from its competitors & thus, more likely to attract youngsters and business people.
- Anti-cyclical industry -
People poor people have to pawn = Earn Interest!
People rich people buy jewellery = Earn Capital gains!
- Short period of time from startup to listing (not enough time to analyse it thoroughly)
- Stigma against such slow moving stocks where Operations are in Singapore (Old Chang Kee, Mary Chia etc)
- 33% Premium to NTA -> Fundamentally overpriced
- Subject to Gold, Jewellery asset prices + low interest rate changes
- Competitive environment with many old established pawnshops around.
An Independent Opinion
I think despite the global woes, Maxi Cash is a well-known company and the price may soar in the first few days.
I will rate it as a short term Buy and Sell within days or even 1 day because of many uncertainness behind it + everyday you may have bad news from whichever region that will come crashing down the stock.
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